Few things are more exciting for a company than international expansion. Choosing Nigeria as the location for your next move is bound to bring new business relationships, skilled talent, and more. However, setting up a Nigeria subsidiary doesn’t come without challenges.
G-P can eliminate these challenges entirely. You won’t have to establish a subsidiary in Nigeria when you work with us. As a global Employer of Record (EOR), we’ll hire employees on your behalf, streamline payroll, and manage all matters of compliance. Best of all, we’ll help you start working in a few days instead of a few months.
How to set up a Nigeria subsidiary
Learning how to set up a Nigeria subsidiary isn’t an easy task and depends on a variety of factors. You should start by finding a place for your physical office space. Since Nigeria is made up of different states, you need to keep in mind that each state could have its own Nigeria subsidiary laws. Always research your preferred area before signing a lease or securing a building to make sure it’s easy to incorporate in the area.
Another important decision that will impact the setup process is your entity. Different subsidiary structures have their own rules and will affect how you operate in the country. For example, a limited liability company (LLC) will give you the most freedom to operate in Nigeria. You can choose among different entities, including an LLC, partnership, or establishment.
The steps to set up a Nigeria subsidiary as an LLC include:
- Choosing a unique and available name
- Providing a company objective
- Providing a registered principal address for the company
- Providing details of the parent company and the subsidiary’s shareholders
- Providing details of the company’s secretary
- Giving authorities the resolution of the parent company or holding company that authorizes the registration of the subsidiary
- Registering the memorandum and articles of association of the company
- Providing a copy of the certificate of incorporation
Nigeria subsidiary laws
Nigeria’s subsidiary laws stipulate certain requirements for LLCs to operate. For example, you need at least 2 shareholders and 2 directors of any nationality. Minimum share capital is NGN 100,000 and companies with international shareholders must have a minimum share capital of NGN 10 million. It usually takes about 6 weeks for a company to incorporate if they follow all of the country’s subsidiary laws every step of the way.
Benefits of setting up a Nigeria subsidiary
Although learning how to set up a Nigeria subsidiary is a tedious process, it does come with some benefits. The biggest is that you can start working in the country legally. Incorporating as an LLC is an even better option because it will give you the benefit of limited liability. Your parent company won’t face any costly litigation or other problems related to the subsidiary. Plus, your subsidiary can operate independently of the parent company with its own company culture that meets Nigeria’s local culture.
G-P provides all these benefits and more. Wit us, you won’t have to incorporate, and you also won’t have to worry about compliance. Our team will manage compliance and handle Nigeria’s subsidiary laws for your company.
Other important considerations
Before you start the incorporation process, you should work with a lawyer, accountant, or consultant to make sure you follow all of Nigeria’s subsidiary laws.
Since it takes at least 6 weeks to set your company up, you’ll need to clear your schedule. You may need to travel back and forth to Nigeria during the incorporation process. It’s also a good idea to set aside the resources you’ll need to complete your Nigeria subsidiary setup process.
Enter new markets with G-P — no new entities required.
Beat the competition and enter new markets in minutes, not months, with G-P. We’ve paired our industry-leading team of in-region HR and legal experts with our #1 global employment platform to help you hire compliantly in 180+ countries, eliminating the need to set up local entities or subsidiaries.
Get in touch today to learn more about how we can streamline the global growth process.